SEC chair may face legal charges over crypto security promotion: Report

Allegedly Gary Gensler promoted the Algorand crypto project and now current findings are showing that he violated securities law. 

Gary Gensler is chairman of the United States Securities and Exchange Commission (SEC). In 2021 he joined the agency temporarily but later he assumed his position as a permanent boss. Before the SEC, Gensler taught about Bitcoin – blockchain technology at MIT. Since 2021, Gensler showed a significant negative inclination against the crypto sector. In Q3 2023, the SEC agency charged several crypto companies under the leadership of Gensler.

On 17 April 2023, A Crypto Twitter user shared a video in which we can see clearly that Gary Gensler supported Algorand crypto technology and also he talked about its founder. 

In the posted video Gensler said:

“Silvio Micali’s Alogrand, he’s a Turing Award winner at MIT I work with… Silvio’s got great technology, it has performance, you could create Uber on top of it.”

Crypto Twitter user noted that Gensler is playing two sides games, on one side he supported the Algorand crypto project and on the other side, he considered it a security asset. 

SEC claims Algo is security

Algo is a native coin of the Algorand blockchain network and in a recent SEC’s charge against the Bittrex crypto exchange, the SEC body named 6 crypto tokens as security including the Algo token. 

Potential Legal charge against Gensler

Many legal experts noted that Gensler promoted Algo crypto security and that is a violation of the Securities Act of 1933 and the Securities Exchange Act of 1934.

In 2022, the SEC body charged Kim Kardashian for touting crypto security. 

Now it will be interesting to see if the SEC agency will take any legal action against Gensler over crypto security promotion or not. 

Read also: England seeks some restrictions against stablecoin uses